Commerce Dept. on Encryption Export Control Regulation

October 18, 2000
U.S. Updates Encryption Export Rules to European Union and Other
Trading Partners

Washington -- The U.S. Department of Commerce Bureau of Export
Administration (BXA) will tomorrow publish a final encryption rule
that permits most encryption products to be exported to the 15 nations
of the European Union as well as Australia, Japan, New Zealand,
Norway, Switzerland, Czech Republic, Poland, and Hungary. The new
regulation implements policy updates announced by the Administration
on July 17, 2000, and tracks with recent regulations adopted by the
European Union, thus assuring continued competitiveness of U.S.
industry in international markets.

"The President and the Vice President have provided the leadership to
create a balanced, market-driven approach for shipping these products
overseas. This important step recognizes the rapid growth in the
commercial encryption sector while protecting national security
interests," said Commerce Under Secretary for Export Administration
William A. Reinsch.

Under the new regulation, U.S. companies can export under license
exception most encryption products to any end-user in the 23 countries
noted above including the worldwide offices of firms and organizations
headquartered in these nations. U.S. companies can ship their products
to these nations immediately after they have submitted a commodity
classification to BXA, rather than waiting for the review to be
completed. The regulation streamlines and reduces post-export
reporting requirements for many products containing or preloaded with
encryption, including personal computers, laptops, handheld devices,
network appliances, and short-range wireless technologies.

Today's action and other steps announced recently, like the proposed
Advanced Encryption Standard, represent significant progress toward
creating a more secure digital economy. The Administration's balanced
approach allows U.S. industry to maintain its leadership, protects
national security and law enforcement interests, and promotes
e-commerce and privacy.

Restrictions on exports to terrorist-supporting states, their
nationals and other sanctioned entities are not changed by the new
rules.